Annual Financial Report 12/31/1982

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CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1982 Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued INVENTORY The inventory of the Proprietary Fund is stated at the lower of cost or market on the first -in, first -out basis. LOCAL GOVERNMENT AID REVENUE RECOGNITION Local government aid is provided to the City by the State as a shared tax based upon a statutory formula and without restrictions. Payment from the State is generally received during each calendar year for that calendar year. The City recognizes local government aid revenue when it becomes both measurable and available to finance current operations. In practice, local government aid is recognized as revenue as it is received in cash. For 1981, certain of these payments were not received at the normal time of receipt. (See note 12) GRANT REVENUE RECOGNITION The City receives various Federal, State and other grants, the purpose of which is to fund specific City expenditures. These revenues are recognized at the time of the specific expenditures. The City also receives Federal Revenue Sharing and other general purpose grants. These grants are recognized as revenues in the period to which the grant applies. PARK DEDICATION FEE REVENUE RECOGNITION The City receives Park dedication fees from developers. The amount due the City is collectible when the developer's land is platted. The City has granted a delay in the collection from several property owners pending development of the platted property. The amounts not collected at the normal time of receipt have been presented as deferred revenue. The amount of unrecognized park dedi- cation fees due the City upon application for building permits was $12,306 and $15,901 at December 31, 1982 and 1981 respectively. PROPERTY TAX REVENUE RECOGNITION The City Council annually adopts a tax levy and certifies it to the County for collection. The County is responsible for billing and collecting all property taxes for itself, the City, the local School District and other taxing authorities. These taxes are payable (by property owners) by May 31 and October 31 of each calendar year. These taxes are collected by the County and remitted to the City by approximately July 15, and December 15. Additionally, delinquent collections (November through February) are remitted to the City each March. The City has no ability to enforce payment of property taxes by property owners. The County possesses this authority.